EquiLend鈥檚 NGT platform up 3% YoY in executed trades in November
20 December 2024 US
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EquiLend executed 2,722,358 trades on its NGT platform in November, generating US$3.06 trillion 鈥� a 3 per cent increase year-on-year.
The yearly growth comes as demand was strong for US and emerging market corporate bonds. Despite this, the figure represents a 10 per cent decline from October.
According to Mike Norwood, head of Trading Solutions at EquiLend, the US election was the driving factor as speculation on future policy being more business-friendly drove indices higher.
Positive macro data and further central bank rate cuts (Federal Reserve, Bank of England) also contributed to positive returns and dampened volatility.
Ultimately, this weighed on the lending market and resulted in an 8 per cent drop in US equity trade counts from October, but this was still up 4 per cent versus November 2023, the firm reports.
A strengthening dollar and fears of future US trade policy dragged down emerging market indices and NGT saw strong demand for Taiwanese (+22 per cent), Singaporean (+15 per cent), and Malaysian (+18 per cent) equities as offshore money exited and created additional short interest.
In the firm鈥檚 securities finance market review, Norwood notes that fixed income remained in focus as favorable interest rates were offset by currency movements amid concerns over potential renewed inflationary pressures in 2025, with expectations now pointing towards only three more rate cuts next year.
US (+11 per cent), APAC (+6 per cent) and South American (+14 per cent) bonds were the most active in the fixed income space.
鈥淟ooking forward, a lot depends on the new US administration, and it will be interesting to see how markets react in the first half of 2025 as more becomes clear on policy,鈥� Norwood comments.
The yearly growth comes as demand was strong for US and emerging market corporate bonds. Despite this, the figure represents a 10 per cent decline from October.
According to Mike Norwood, head of Trading Solutions at EquiLend, the US election was the driving factor as speculation on future policy being more business-friendly drove indices higher.
Positive macro data and further central bank rate cuts (Federal Reserve, Bank of England) also contributed to positive returns and dampened volatility.
Ultimately, this weighed on the lending market and resulted in an 8 per cent drop in US equity trade counts from October, but this was still up 4 per cent versus November 2023, the firm reports.
A strengthening dollar and fears of future US trade policy dragged down emerging market indices and NGT saw strong demand for Taiwanese (+22 per cent), Singaporean (+15 per cent), and Malaysian (+18 per cent) equities as offshore money exited and created additional short interest.
In the firm鈥檚 securities finance market review, Norwood notes that fixed income remained in focus as favorable interest rates were offset by currency movements amid concerns over potential renewed inflationary pressures in 2025, with expectations now pointing towards only three more rate cuts next year.
US (+11 per cent), APAC (+6 per cent) and South American (+14 per cent) bonds were the most active in the fixed income space.
鈥淟ooking forward, a lot depends on the new US administration, and it will be interesting to see how markets react in the first half of 2025 as more becomes clear on policy,鈥� Norwood comments.
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